Digital technology drives energy pricing

We will be looking at the effect of digital technologies on energy models and pricing for businesses and homes at our City Hall, London forum in June.

EY says that energy companies need to work out what drives their customers, build business models to match, but be flexible enough to adapt to their evolving expectations.

Energy companies, EY's Benoit Laclau says, are used to charging customers to recover the costs of building, owning and operating assets that generate and deliver electricity. It is a simple model, he observes, which has meant they haven't had to think about serving their customers in a particularly sophisticated way.

Now digital technologies and increased competition from both inside and outside the sector are creating a more distributed, inclusive marketplace, he warns, and says that individuals, businesses and communities, spurred by the availability of smart devices and low-cost renewables, are exploring ways to optimize consumption, source greener energy and manage their energy bills more efficiently.